3i Infrastructure tops full-year total return target

3i Infrastructure announced a successful financial year on Wednesday, reporting an 11.4% return for the 12 months ended 31 March, topping its target for a total return of 8% to 10% per annum over the medium term.

The FTSE 250 company said it had consistently met or exceeded that target over the long term.

It also delivered its 2024 dividend target, and raised the target dividend for the 2025 financial year by 6.3%.

The year saw a total return of £347m, representing an 11.4% return on its opening net asset value.

Despite that, the firm’s share price did not fully reflect the growth in its net asset value, resulting in a total shareholder return (TSR) of 8.1%, slightly below the FTSE 250's return of 8.7% in the same period.

However, since its initial public offering, 3i Infrastructure had maintained an annualised total shareholder return of 11.5%, outperforming the broader market.

Regarding dividends, the company met its 2024 target, paying out a full-year dividend of 11.9p per share, a 6.7% increase from the prior year.

Looking ahead, 3i Infrastructure said it would continue its progressive dividend policy, with a total dividend target of 12.65p per share for 2025, reflecting a 6.3% increase.

The company's annual general meeting (AGM) was scheduled for July 4, where new board appointments would be confirmed.

Martin Magee and Jennifer Dunstan would stand for election as non-executive directors, while Wendy Dorman and Samantha Hoe-Richardson would retire from the board.

Despite challenges such as interest rate hikes early in the financial year, 3i Infrastructure remained optimistic about its outlook.

The firm said its portfolio consisted of resilient businesses aligned with long-term megatrends, providing essential services to communities.

“3i Infrastructure continues to deliver long-term sustainable returns,” said chair Richard Laing.

“I am pleased to report that we achieved another year of outperformance, with a total return of 11.4% in the year ended 31 March.

“This is the 10th consecutive year that the company has met or exceeded its target return.”

At 0906 BST, shares in 3i Infrastructure were up 0.23% at 339.79p.

Reporting by Josh White for Sharecast.com.